S. Korea sets new automobile fuel economy, gas emission standards

(ATTN: UPDATES with more details in paras 4, 15; ADDS new information from para 21)
By Lee Joon-seung
SEOUL, July 6 (Yonhap) -- South Korea will introduce new fuel economy and
greenhouse gas emission standards for all passenger cars starting in 2012 to help
meet global industrial trends on energy conservation and environmental
protection, the government said Monday.
The inter-ministerial plan, outlined at the Presidential Committee on Green
Growth, calls for local carmakers to meet tougher standards than those being
planned by the United States.
"The plan that will be phased in from 2012 through 2015 stipulates that local
carmakers must make vehicles that on average can travel 17km or more on a liter
of fuel, and emit less than 140 grams of greenhouse gases per kilometer
traveled," said Woo Ki-jong, secretary general of the state committee.
He said companies that fail to meet such standards will be penalized after a
one-year grace period, while those that satisfy the requirements will be rewarded
in the form of tax benefits and other incentives.
The rules will only apply to cars that carry less than 10 passengers with
requirements for large buses and trucks to be established in the next few years.
"Because time is needed for companies to develop the necessary technology, only
30 percent of cars made by companies for sale in the country need to meet the
requirements in the first year of their implementaion, with numbers to go up to
60 percent and 80 percent in 2013 and 2014, respectively," he said.
The official added that by 2015 carmakers must be able to produce vehicles that
fully meet the requirements.
Woo added that to reduce the burden on businesses, companies will be able to
choose between improved mileage and better greenhouse gas emission levels.
Mileage and gas emissions are usually closely related, although for companies
that generally make diesel-driven cars, it may be easier to satisfy mileage than
gas emission levels.
The United States is striving for greater mileage, while the European Union (EU)
is focused on cut backs in gas emission levels.
Washington said it will strive for a 5 percent improvement in energy efficiency
for its cars every year in the 2012-2016 period, with the EU aiming to cut
greenhouse gas emission levels to 130 grams for a kilometer traveled in 2015.
Japan said it will increase the fuel economy of its cars so a vehicle can move an
average 16.8km on a liter of fuel.
"The requirements are for cars made in the country and sold domestically, with
carmakers required to meet different standards set by other countries if they
want to ship units abroad," the official said. He said imported cars will be
required to meet similar standards with some allowances being made.
In 2008, South Korea ranked fifth in terms of automobile production, having
produced 3.82 million cars. Of these a large percentage were exported abroad with
about 60 percent going to the United States and Europe.
To support efforts to make more efficient cars, the government said it will
provide comprehensive research and development (R&D) funds. Seoul can also offer
tax breaks reaching 3.1 million won (US$2,444) per new fuel efficient vehicle
purchased, while measures are underway to establish preferential auto insurance
policies for people that buy eco-friendly vehicles.
It said a localized form of France's Bonus-Malus system that gives both
incentives and disincentives for people who buy new cars is being established.
The system first set up in 2008 gives state subsidies to people who buy cars with
low greenhouse gas emission levels, while slapping surcharges on those who buy
vehicles that release large amounts of gases into the atmosphere.
Related to the move, experts said R&D is important because at present South
Korean technology levels stand at roughly 70 percent of Japan in terms of fuel
efficiency expertise.
The average South Korean car in 2007 traveled 11.04km on a liter of fuel compared
to 15.7km for Japanese models. A Japanese car emitted 152 grams of greenhouse
gases per kilometer traveled vis-a-vis 201 grams for South Korean cars.
Others at the Ministry of Knowledge Economy and the Ministry of Environment
stressed that meeting the new requirements is important if Seoul is to operate
successfully in the so-called post Kyoto Protocol environment.
The Kyoto Protocol, adopted in late 1997, is an extension of the international
Framework Convention on Climate Change that went into effect on Feb. 16, 2005. Of
its over 180 signatories, Japan and 36 countries from the European Union are
Annex 1 countries that have pledged to cut greenhouse gases. South Korea is a
signatory, although it is not currently required to cut back on greenhouse gases.
The country may be compelled to join the regime as a full-fledged member after
2013.
South Korea emits 600 million tons of greenhouse gases every year, with 19.3
percent or roughly 100 million tons coming from the transportation sector.
Policymakers, meanwhile, said that if the measures are fully implemented by 2015,
the country could cut greenhouse gas emission by 8 million tons and save 15
million barrels-equivalent of crude oil.
It could also allow the country to become the fourth-largest producer of
eco-friendly green cars, with overall car production to increase by 10 percent in
2013 compared to 2008.
This translates into 7.6 trillion won worth of additional production in the car
industry that can create 20,000 new jobs.
yonngong@yna.co.kr
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